Bank of Russia Pledges to Rescue Trust as Ruble Crisis Hits - Bloomberg

Bank of Russia Pledges to Rescue Trust as Ruble Crisis Hits - Bloomberg:



"Russia’s central bank provided a 30 billion-ruble ($531 million) bailout for National Bank Trust, its biggest rescue since the ruble crisis began this month.



The Deposits Security Agency will take control of National Bank Trust, one of the country’s top 15 lenders by retail savings, while the central bank selects an investor to help shore up the company, the Bank of Russia said in a statement today.



The ruble has depreciated 38 percent against the dollar since June and volatility has soared to the highest since Russia defaulted on local-currency debt 16 years ago, stoking concern that Russian lenders’ asset quality has deteriorated. Russian banks’ willingness to lend to each other is declining. The Mosprime overnight rate hit 27.3 percent on Dec. 18, the highest since Bloomberg started compiling the data in 2006."



'via Blog this'